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EU's Myanmar move risks ASEM ties
By Alan Boyd

SYDNEY - When the European Union began converting its lapsed communist neighbors during the great drive to the east in the late 1990s, the bureaucratic army undertook a simple marketing exercise. Aspiring members of the expanding bloc had to put their eligibility on the line by completing a political and economic checklist that tested their willingness to meet required standards of reform in government, business and personal freedoms.

A decade on, the Europeans are seeking to apply the same principles in their dealings with Asian trading partners, though on a more selective basis - and it's not going down well with the Asians, a fact that could cost the Europeans dearly.

In April the EU informed Asian members of the Asia-Europe Meeting (ASEM) consultative body that Myanmar was not welcome to join until it mended its ways by freeing detained opposition leader Aung Sang Suu Kyi and opening a political dialogue with her oppressed National League for Democracy (NLD). Buckling to domestic political pressures, the United Kingdom and the Netherlands proposed a set of benchmarks modeled on two human-rights covenants drawn up in Copenhagen that would in effect set a timetable for Myanmar's transition to democracy.

The formula worked in Europe but has brought only grief in the Asia-Pacific region. While few were surprised when it was rejected out of hand by Yangon, the depth of resistance by Myanmar's partners in the 10-member Association of Southeast Asian Nations (ASEAN) was somewhat less anticipated. Seven existing ASEAN members of ASEM said they would block the inclusion of the EU's 10 new eastern states unless the Europeans backed down. But they couldn't.

Boxed into a corner by the dogmatic British and Dutch, the EU was forced to pull out of two high-level ASEM economic sessions in July and September last year, and gave notice that it would probably not attend a summit of national leaders in Hanoi in October.

Suddenly a business relationship worth almost US$500 billion is starting to look shaky.

"By insisting, the European Union now risks allowing [Myanmar] to turn into another Zimbabwe standoff, with the EU indirectly strengthening rather than weakening the country's leadership in Myanmar's transition and allowing Myanmar to play out the EU and its Asian partners against each other," said Erik Friberg, a researcher at Tufts University in the United States.

"Just as it was a miscalculation on the EU side to believe that South Africa's President [Thabo] Mbeki ... would be inclined and have the leverage to influence changes in Zimbabwe's policies, it is misguided to believe that increased EU pressure on other ASEAN member states will make a significant impact on their policies toward Myanmar."

The biannual ASEM summits are the prestige event of a forum that has made significant, if largely unpublicized, progress in bridging the Asian and European positions in such diverse areas as trade and investment, security tensions, transnational crime and the alleviation of poverty.

Established in 1996 on a joint initiative by Singapore and France, ASEM was originally envisaged by the EU as a counterpoint to the Asia-Pacific Economic Cooperation (APEC) caucus, which gave the United States a handy edge in trade dealings with newly industrialized Asian states.

ASEM's 10 Asian members - seven from ASEAN, plus Japan, South Korea and China - are the EU's second-biggest export market worldwide and supply the bulk of European imports. Two-way trade is worth $450 billion a year and investment a further $20 billion, putting a steep price on the EU's political principles.

Some members of the bloc evidently agree, as the UK in particular has come under intense pressure to compromise so that the summit, which will confirm a range of cooperative economic ventures, can be salvaged. The Republic of Ireland has already broken ranks. To the EU's acute embarrassment, Dublin established diplomatic relations with Myanmar on a non-resident basis in February just as Ireland was about to assume the presidency of the Council of Europe.

France, never wholly comfortable with the ostracization of Yangon, has also weakened, dispatching Minister of State for Foreign Affairs Renaud Muselier to Singapore last month in the search of a breakthrough. And the Netherlands agreed in mid-July to send former foreign minister and EU Commissioner Hans van den Broek on a shuttle run to consult with government leaders in Bangkok, Hanoi, Beijing and Tokyo.

Asia's position is also far from concrete, with the more authoritarian countries unsurprisingly taking a harder line than those with entrenched democracies, which have less to fear from EU scrutiny. Cambodia and Laos, the other ASEAN non-members, have even said they may boycott ASEM if Myanmar is left out.

ASEAN has conveniently forgotten that Myanmar, Cambodia and Laos are not members of APEC either as the US, like the EU, insists that states should be judged on their merits without gaining automatic entry.

There is also a precedent within ASEAN for withholding membership. In 1997 Cambodia was rebuffed because of internal political strife, eventually joining two years after Laos and Myanmar. The preconditions imposed on Cambodia? For the sake of regional stability, Phnom Penh had to demonstrate that it would hold free and fair elections and agree to establish a coalition government that encompassed all political factions.

On purely economic terms, the excluded Asian countries have little to offer ASEM. Their combined trade with the EU amounted to a modest $1.5 billion in 2002, the most recent year that data were released.

Myanmar's trade ties are being squeezed by economic sanctions and visa curbs that have been applied progressively by the EU since 1996. Preferential trade benefits were withdrawn in 1997 and the European assets of regime members were frozen last January.

There will be much more to lose if the Europeans elect to apply the same standards in their dealings with autocratic China, Vietnam, Singapore and Brunei. They probably won't, as these states would present tougher targets than vulnerable Myanmar.

The most likely outcome to a standoff that neither side had wanted is that Myanmar will be granted a form of second-tier membership of ASEM that doesn't require European leaders to do photo calls alongside its tainted generals.

Of course, Yangon could loosen the screws by freeing Aung San Suu Kyi or bringing the NLD into its much-derided constitutional convention, as a precursor to free elections, thus offering everyone a face-saver. But not even the Europeans have this on their checklist.

(Copyright 2004 Asia Times Online Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Aug 11, 2004



Big Brother Beijing blocks Yangon reform
(May 12, '04)

When all else fails, try engaging Myanmar
(Apr 28, '04)

 



 

 
   
         
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